Melbourne: Vacancy Tax to Hit Foreign Property Buyers

5 months ago 0 0 748

Government measures for affordable housing at expense of foreign investors: (i) Vacant Residential Property Tax (VRPT) (ii) New residential developments restricted to only 50% foreign buyers Last month we published an article announcing the latest raft of changes by the government to scrap off-the-plan stamp duty concessions in order to waive stamp duties for first-time buyers of houses worth up to $600,000 in Melbourne. (Click HERE to access the article). More restrictions are in store for foreign investors. The Victoria government has also now effected a vacancy tax (Vacant Residential Property Tax or VRPT) which will will cost foreign buyers who don’t have a tenant in their property (or live in it themselves) for more than 6 months in a year, an annual penalty of 1% of the property’s capital-improved value. This means investors with a home worth $500,000 will pay $5,000 in tax if they don’t rent the place

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Why Investors Must Buy Melbourne Property NOW before 1 July 2017

6 months ago 0 1 1525

From 1 July 2017, purchasers of off-the-plan (not yet built) commercial or residential investment properties will be liable to stamp duty on the purchase price or market value of the property (whichever greater) Investors will possibly pay approximately $15K – $20K* more than what they are currently paying Off-the-plan concession only for purchasers who make the property their principal dwelling  Investors should get into the Melbourne property market NOW and exchange by 30 June 2017 to avoid hefty stamp duty charges, which could cost some $15K to $20K* more than current rates. From 1 July 2017, investors of Melbourne property are no longer eligible for stamp duty concessions, resulting in payment of tens of thousands of dollars more. Note: Victoria is the only state in Australia that has stamp duty concessions. The increase in stamp duty charges are due to the Victoria government’s changes to the First Home Owner Grant

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Melbourne – 3 Weeks to Stamp Duty Increase

1 year ago 0 1 1011

TICK TOCK. The clock is ticking. Come 1 July 2016, the 4% increase in stamp duty surcharge imposed by the Victoria state government on foreign property investors shall take effect. This increase, announced late April 2016, comes hard on the heels of the 3% stamp duty surcharge introduced on 1 July last year. Victoria’s new stamp duty for foreign buyers of residential property is similar to changes adopted by the governments of Hong Kong, Singapore (and Malaysia), which charge an additional 15% stamp duty over and above the amount paid by domestic buyers. Below is a FAQ detailing what the increase in stamp duty surcharge means for the foreign investor, and the implications to housing and investment into Victoria moving forward. What is the new stamp duty rate imposed on foreign purchasers on 1 July 2016? On 1 July 2016, foreigners will have to pay a stamp duty of 7% on purchases of

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Brunswick East: Transformed Property Landscape

1 year ago 0 1 728

PLENTY has changed for the Brunswick East neighbourhood. The suburb in Melbourne’s inner North has transformed into a gentrified area featuring some of the hippest and trendiest dining, entertainment and retail outlets in the city namely along the Fitzroy and Lygon Streets. At its most basic, Brunswick East’s allure lies in its close proximity to Melbourne CBD. Australians, in general, prefer living out of the city – a segregation that draws a clear line between work and play, both geographically and psychologically. Conversely, Asian investors prefer to be at the heart of the action, but are compelled to invest in dwellings outside the city to accommodate the local rental market comprising mainly young Australians. One can imagine how being only 3km – 4km from the city centre, with fantastic public transport accessibility, makes living in the Brunswick East locality extremely attractive. Additionally, housing is bigger and comparatively more affordable to neighbouring

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